SodaStream Shares Catapulted as Fizzy Demand Skyrockets

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Published July 31, 2013

| FOXBusiness

Shares of SodaStream (SODA) jumped 11% Wednesday after the company widely surpassed top- and bottom-line Wall Street expectations for the second quarter.

The Israeli maker of at-home soda makers reported net income of $12.9 million, or 60 cents a share, up about 36% compared with a year-earlier profit of $9.5 million, or 45 cents.

Adjusted for one-time items, SodaStream, which was at the helm of unfounded reports during the quarter that PepsiCo (PEP) was eyeing it for a takeover, said it earned 74 cents, widely ahead of average analyst estimates of 57 cents in a Thomson Reuters poll.

Revenue for the three months ended June 30 climbed 28.5% to $132.4 million from $103 million a year ago, beating the Street’s view of $129.7 million. In the Americas, sales jumped 55% to $30.7 million. Sales also gained 14% in Western Europe, despite the region’s economic turmoil.

SodaStream CEO Daniel Birnbaum attributed much of the revenue gains to the introduction of its fizzy machines at Wal-Mart (WMT). Global first half unit sales of soda makers, gas refills and flavors were up 18%, 30% and 25%, respectively.

“Operating income grew at a faster pace than revenue as we leveraged expenses to drive earnings per share ahead of expectations,” he said. “We are making great progress against our plan to grow our installed base and strengthen user loyalty.”

SodaStream raised its fiscal 2013 outlook to increase 30% year-over-year to roughly $567 million, above the consensus view of $558 million. It anticipates full-year adjusted net income to increase by about 30%.

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